The long-run aggregate supply when resources are fully employed
A. will always be associated with a point outside the production possibilities curve.
B. will always be associated with a point on the production possibilities curve.
C. is determined by demand.
D. has no relationship with the production possibilities curve.
Answer: B
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Based on the production function in the above figure, which of the following is an attainable combination of labor and real GDP?
i. 300 billion hours of labor and real GDP of $20 trillion ii. 300 billion hours of labor and real GDP of $8 trillion iii. 100 billion hours of labor and real GDP of $12 trillion A) i only B) ii only C) iii only D) ii and iii E) i and ii
In the short run, producers derive surplus from market exchange because
a. total revenue is greater than the minimum amount they would require to sell the good b. total revenue is equal to the minimum amount they would require to sell the good c. total revenue is less than the minimum amount they would require to sell the good d. marginal revenue equals average total cost e. they can rob consumers of most of their consumer surplus
If the Canadian dollar price of United States dollars increases from C$.80 to C$1.00, it can be concluded that:
A. Both countries are on the international gold standard B. The Canadian dollar has appreciated in value relative to the United States dollar C. The United States dollar has depreciated in value relative to the Canadian dollar D. The Canadian dollar has depreciated in value relative to the United States dollar
Sally Rand owns a ceiling fan company. She sells 1,000 ceiling fans at $50 each. Each fan costs her $20 . She uses her own money to buy the fans; she withdraws the money from her savings account where it earns 5 percent interest. Before going into the ceiling fan business, she worked as a fan-dancer at $25,000 a year. Should Sally remain in business?